An Eden hotel boss says cash from a Government-backed coronavirus loan scheme saved it from going into administration.
Stephen O’Sullivan, director of the Haweswater Hotel, near Penrith, said money from the Coronavirus Business Interruption Loan Scheme (CBILS) has kept the business buoyant.
The enforced shutdown due to COVID-19 caused the hotel severe cashflow problems but the owners recognised that a loan would provide them with some working capital and enable them to invest in some beneficial upgrades.
“The CBILS loan, and indeed the enforced period of inactivity that the shutdown has brought, has allowed us to take our business to the next level,” said Mr O’Sullivan.
“We can now look forward to welcoming our customers back to see the changes we’ve made during this time.
“If we hadn’t have applied to CBILS for that financial support, there was a chance the business would have been put into administration.”
Newly published data shows that businesses across the North West have received more than £4.4bn in funding under the government’s two largest COVID-19 loan schemes, the CBILS and the Bounce Back Loan Scheme.
They both provide financial support to businesses across the UK that are losing revenue, and seeing their cashflow disrupted, as a result of the pandemic.
Almost 4,700 loans worth more than £1.1bn have been offered across the North West under the CBILS, which provides business loans, overdrafts, invoice finance and asset finance of up to £5m to businesses with a turnover of less than £45m.
More than 112,000 loans worth more than £3.3bn have been offered across the region under the Bounce Bank Loans Scheme, which provides a six-year term loan from £2,000 up to 25 per cent of a business’ turnover, with a limit of £50,000.
Small Business Minister Paul Scully said: “Throughout this crisis, we have backed business of all sizes in the North West, and in every corner of the UK.
“The schemes put in place by the government-owned British Business Bank have provided some much-needed breathing space for businesses as they deal with the challenges posed by coronavirus.
“Government support has helped firms right across the North West, not just in keeping businesses going but now enabling thousands to bounce back in a safe, COVID-secure manner.”